ARM (NASDAQ:ARM) Shares Down 10% – What’s Next?

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) traded down 10% on Friday. The stock traded as low as $198.77 and last traded at $205.97. 10,401,548 shares changed hands during trading, an increase of 39% from the average daily volume of 7,463,668 shares. The stock had previously closed at $228.77.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on ARM shares. Benchmark began coverage on ARM in a report on Thursday, July 16th. They issued a “hold” rating for the company. Wells Fargo & Company dropped their price objective on shares of ARM from $350.00 to $280.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Piper Sandler started coverage on shares of ARM in a research report on Wednesday, September 9th. They set an “overweight” rating and a $320.00 target price for the company. Needham & Company LLC reiterated a “buy” rating and issued a $255.00 target price on shares of ARM in a research note on Thursday, July 30th. Finally, Morgan Stanley lifted their target price on shares of ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $303.32.

ARM Stock Performance

The company has a market capitalization of $219.99 billion, a P/E ratio of 212.34, a price-to-earnings-growth ratio of 7.00 and a beta of 3.78. The business has a 50 day moving average of $259.62 and a 200-day moving average of $227.44.

ARM (NASDAQ:ARM) last issued its quarterly earnings data on Thursday, July 30th. The company reported $0.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.40 by $0.05. ARM had a return on equity of 12.24% and a net margin of 20.25%. The business had revenue of $1.29 billion for the quarter, compared to analysts’ expectations of $1.26 billion. During the same quarter in the prior year, the firm posted $0.35 EPS. The firm’s quarterly revenue was up 22.4% on a year-over-year basis. As a group, equities analysts forecast that Arm Holdings PLC Sponsored ADR will post 1.15 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Jason Child sold 10,400 shares of the company’s stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $300.00, for a total transaction of $3,120,000.00. Following the sale, the chief financial officer directly owned 153,442 shares in the company, valued at $46,032,600. This represents a 6.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Investors Weigh In On ARM

A number of institutional investors and hedge funds have recently modified their holdings of the company. Envestnet Portfolio Solutions Inc. bought a new stake in ARM during the 2nd quarter worth approximately $2,755,000. QRG Capital Management Inc. boosted its holdings in ARM by 32.1% in the 2nd quarter. QRG Capital Management Inc. now owns 9,591 shares of the company’s stock valued at $3,401,000 after purchasing an additional 2,330 shares during the period. BlueCrest Capital Management Ltd bought a new position in ARM in the 2nd quarter valued at $1,359,000. Public Employees Retirement System of Ohio purchased a new position in shares of ARM during the 2nd quarter valued at $38,280,000. Finally, Swedbank AB grew its position in shares of ARM by 15.7% during the 1st quarter. Swedbank AB now owns 421,000 shares of the company’s stock valued at $63,689,000 after purchasing an additional 57,000 shares in the last quarter. 7.53% of the stock is owned by hedge funds and other institutional investors.

About ARM

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops central processing unit (CPU) architectures and related intellectual property. Rather than manufacturing chips itself, Arm licenses its designs and instruction-set architectures to semiconductor companies and technology manufacturers, which incorporate them into their own products.

The company’s offerings include CPU processor cores, graphics processing units through its Mali product family, system IP, development tools and software.